Judgment

Shiva Kirti Singh, J.

1. Both the appeals have been preferred under Section 15Z of the Securities & Exchange Board of India Act, 1992 (for brevity ‘the SEBI Act’) against a common judgment and order dated 09th May 2006 rendered by the learned Securities Appellate Tribunal (for brevity ‘the SAT’) in Appeal No.123 of 2004 and other analogous appeals filed by the stock brokers (respondents herein) to challenge the action of the Securities & Exchange Board of India (for short, ‘the SEBI’) denying them the benefit of fee continuity in terms of paragraph 4 of Schedule III to the Securities & Exchange Board of India (Stock Brokers and Sub-Brokers) Regulations, 1992 [hereinafter called ‘the Regulations’].

2. The SAT formulated the issue falling for determination in the form of a question –

“whether stock brokers who have converted their individual/partnership membership into a corporate entity prior to April 01, 1997 are entitled to the fee continuity benefit in terms of paragraph 4 of Schedule III ….”.

Since the SAT answered the question in favour of the stock brokers (the respondents herein), SEBI is in appeal.

3. The basic facts are common in all the matters inasmuch as the concerned